The conversations of life

Over 65? You can now boost your super by $300,000 – by downsizing to a retirement village


People aged 65 and older will now be able to make a non-concessional (post-tax) contribution of up to $300,000 – and $600,000 for couples – from the sale of the family home, under new rules announced by the Federal Government in last week’s Budget.

From July 2018, people who have owned their home for 10 years or longer will be able to claim the incentive which is exempt from the current $1.6 million transfer balance cap on super contributions.

The contributions are also exempt from the work test, which only allows those over 65 but under 75 working part-time to make voluntary super contributions; and the age test, which prevents people over 75 from contributing to their super.

Supersizing your super

Take Liz and Chris, a retired couple aged 72 and 76 who sell their home for $1.2 million. They will both be able to take advantage of the scheme, even though Liz no longer meets the standard contribution work test and Chris is over 75.

You’ll also be able to make the contributions even if you’re still working part- or full-time, regardless of how much you have in your account already.

And where can all these over-65s move to? A retirement village of course!

Retirees who downsize to retirement villages save the Government more than $2 billion each year from fewer GP and hospital visits and delayed entry into aged care, according to the Property Council.

That’s a drop in the ocean compared to the $30 million the incentives will cost the Budget. Good news for us and the Government.

Chris Baynes is a columnist and publisher of Frank & Earnest. He is also the publisher of, the leading national directory of retirement villages and aged care services in Australia.

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